Should vendors keep supplying wounded Circuit City?
That’s the latest stumble for the sagging Richmond-based electronics retailer which listed a $239.2 million quarterly loss in late September.
Credit reporting agency Bernard Sands LLC made its warning based on Circuit City’s financial performance. In response, the firm has tried to reassure vendors saying that they should keep supplying the chain.
With big sales period of the Christmas holidays approaching, Circuit City badly needs to make a good showing and can’t have any interruptions of products to sell.
Yet the firm doesn’t have as much cash with which to get products. Its cash dropped from $424.4 million to $92.5 million in the fiscal second quarter. Stock is doing poorly too, closing at 41 cents/share on Wednesday.